The Bank of New York Mellon Corp. (BNY) and Mizuho Bank cooperate to provide trade services to corporate clients in Asia.
The mentioned financial institutions have concluded the agreement to join the network of correspondent banks for international trade. The relevant information is contained in the BNY press release, which was published last Sunday, October 20.
The mentioned press release notes that as part of the cooperation, financial institutions will use an expanded trade network to provide more extensive connectivity to customers. In this case, it is assumed that both sides of the partnership will have access to each other’s trade networks. The corresponding circumstance, as noted in the press release, will allow banks to deliver streamlined trade services and simplify the processes of compliance with legal requirements.
Tsutomu Yamamoto, managing executive officer, head of the global transaction banking unit at Mizuho Bank, said that the cooperation between the two financial institutions is taking place at a time when large corporations are seeking to expand their opportunities for cross-border trade. Mr. Yamamoto also noted separately that this landmark collaboration with BNY will help clients of the financial institution of which he is a representative to capture new trade opportunities while managing risks. In his opinion, this practice will contribute to the growth of global trade in the long term.
Jennifer Barker, global head of treasury services and depository receipts at BNY, said that as corporations seek growth through cross-border trade, banking trade finance solutions are vital in the context of helping them do business and manage risks. According to her, with connectivity to over 4,000 bank branches globally to facilitate cross-border trade, BNY is proud to work with Mizuho Bank. She noted that within the framework of this cooperation, the possibilities of access to the international trade network will be scaled up, which will help customers expand their businesses.
Currently, trade finance is demonstrating what can be described as a gradual evolution. In this case, it is worth noting that simple financial instruments are transformed into ecosystem offerings that cover the entire journey of the client and include trade loans, discounting loans, supply chain financing, and services such as letters of credit, documentary collections, and performance guarantees.
In August, within the framework of cooperation between BNY and the Commonwealth Bank of Australia (CBA), it was announced the launch of a partnership on cross-border payment transactions. In this case, companies and individuals who receive international payments from BNY customers get paid in as little as 60 seconds, no matter who they bank with.
In September, Fides Treasury Services and Mitigram began collaborating to centralize and simplify global multibank connectivity and transaction communications. In this case, consumers can better manage their trade finance operations. The mentioned partnership also provides customers with seamless connectivity to the Swift system, as a result of which they can access a wide range of banks.
As we have reported earlier, Goldman Sachs and BNY Join Blockchain Project.
